Question 15.15. Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt. Last month, the company raised its price to $35 per shirt and sold 300 shirts. Evidently the company experienced a(n) decrease in demand. increase in demand. decrease in supply. increase in supply.
Question 15.15. Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt. Last month, the company raised its price to $35 per shirt and sold 300 shirts. Evidently the company experienced a(n) decrease in demand. increase in demand. decrease in supply. increase in supply.
Chapter6: Elasticities
Section: Chapter Questions
Problem 12P
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Question 15.15. Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt. Last month, the company raised its
decrease in demand.
increase in demand.
decrease in supply.
increase in supply.
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Step 1
Demand is the willingness and ability of consumers for consuming and buying goods and services at different prices. Supply is the amount of output that producers or sellers are willing to sell in the market at different prices. Under ceteris paribus, the quantity demanded is negatively and the quantity supplied is positively related to prices.
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